On December 11, 2013, the Board approved an Agreement and Plan of Reorganization of the ▇▇▇▇▇▇▇▇ Cornerstone Growth Fund, the ▇▇▇▇▇▇▇▇ Cornerstone Mid Cap 30 Fund, the ▇▇▇▇▇▇▇▇ Cornerstone Value Fund, the ▇▇▇▇▇▇▇▇ Total Return Fund, the ▇▇▇▇▇▇▇▇ Balanced Fund, the ▇▇▇▇▇▇▇▇ Japan Fund and the ▇▇▇▇▇▇▇▇ Japan Small Cap Fund. Each of the Funds identified below is a successor to a series of ▇▇▇▇▇▇▇▇ Mutual Funds, Inc., a Maryland corporation ("HMFI"), ▇▇▇▇▇▇▇▇ SPARX Funds Trust, a Massachusetts business trust ("HSFT"), or The ▇▇▇▇▇▇▇▇ Funds, Inc., a Maryland corporation ("HFI"), pursuant to a reorganization that took place after the close of business on February 28, 2014 (each, a "Predecessor Fund" and, collectively, the "Predecessor Funds"):
* The ▇▇▇▇▇▇▇▇ Cornerstone Growth Fund, a series of ▇▇▇▇▇▇▇▇ Funds Trust ("HFT"), is the successor to the ▇▇▇▇▇▇▇▇ Cornerstone Growth Fund, a series of HMFI;
* The ▇▇▇▇▇▇▇▇ Cornerstone Mid Cap 30 Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Cornerstone Mid Cap 30 Fund, a series of HMFI;
* The ▇▇▇▇▇▇▇▇ Cornerstone Value Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Cornerstone Value Fund, a series of HMFI;
* The ▇▇▇▇▇▇▇▇ Total Return Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Total Return Fund, a series of HFI;
* The ▇▇▇▇▇▇▇▇ Balanced Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Balanced Fund, a series of HFI;
* The ▇▇▇▇▇▇▇▇ Japan Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Japan Fund, a series of HSFT; and
* The ▇▇▇▇▇▇▇▇ Japan Small Cap Fund, a series of HFT, is the successor to the ▇▇▇▇▇▇▇▇ Japan Small Cap Fund, a series of HSFT.
Prior to February 28, 2014, each of the series of HFT identified above had no investment operations. As a result of the reorganization, holders of the Investor Class shares of the Predecessor Funds received Investor Class shares of the series of HFT identified above and holders of the Institutional Class shares of the Predecessor Funds received Institutional Class shares of the series of HFT identified above (each series of HFT identified above is the accounting and performance information successor of the corresponding Predecessor Fund).
